DoD's $315.7M Unmanned Combat Air Vehicle contract awarded to General Atomics Aeronautical Systems, Inc. in 2008

Contract Overview

Contract Amount: $315,745,197 ($315.7M)

Contractor: General Atomics Aeronautical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-11-26

End Date: 2012-04-02

Contract Duration: 1,223 days

Daily Burn Rate: $258.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 16 GWOT UCA

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $315.7 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. for work described as: 16 GWOT UCA Key points: 1. Contract awarded via sole-source justification, raising questions about price discovery and potential for overpayment. 2. Long contract duration of 1223 days suggests a significant, ongoing need for these systems. 3. The contract's value, while substantial, needs benchmarking against similar advanced defense procurements. 4. Lack of competition indicates a potential reliance on a single supplier, posing supply chain risks. 5. The 'Other Communications Equipment Manufacturing' NAICS code may not fully capture the advanced nature of Unmanned Combat Air Vehicles. 6. Performance context is limited without specific delivery details or operational success metrics. 7. Sector positioning within Defense is clear, but specific sub-sector analysis is needed for deeper insight.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without detailed cost breakdowns or comparisons to similar sole-source procurements for Unmanned Combat Air Vehicles (UCAVs). The absence of competition inherently limits the ability to assess if the price achieved represents fair market value. Given the specialized nature of UCAVs, pricing could be significantly influenced by proprietary technology and development costs, making direct comparisons difficult. Further analysis would require access to cost data and a deeper understanding of the specific capabilities delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when only one vendor possesses the necessary capabilities, technology, or security clearances. The lack of competition means that the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process. This approach can lead to higher costs for taxpayers.

Taxpayer Impact: Sole-source awards limit the government's ability to negotiate the best possible price, potentially resulting in higher expenditures for taxpayers. It also reduces the incentive for contractors to offer competitive pricing.

Public Impact

The primary beneficiaries are the Department of Defense, which receives advanced Unmanned Combat Air Vehicle capabilities. Services delivered include the development, production, and potentially sustainment of sophisticated aerial platforms. Geographic impact is likely global, supporting military operations in various theaters. Workforce implications include highly skilled jobs in aerospace engineering, manufacturing, and defense technology within the contractor's organization and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and may lead to higher costs.
Long contract duration could indicate potential for cost overruns if not managed tightly.
Reliance on a single contractor poses supply chain and strategic risk.
Lack of transparency in sole-source justification requires careful scrutiny.
NAICS code may not fully represent the advanced technology procured.

Positive Signals

Award to a known entity in the defense sector suggests established capabilities.
The contract addresses a critical defense need for advanced aerial systems.
Long-term contract indicates a sustained commitment to a strategic capability.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on advanced aerospace manufacturing and unmanned systems. The market for Unmanned Combat Air Vehicles (UCAVs) is highly specialized and dominated by a few key players with advanced technological capabilities and security clearances. Spending in this area is driven by evolving military requirements for intelligence, surveillance, reconnaissance, and strike capabilities. Comparable spending benchmarks would involve other major defense contracts for advanced aircraft or weapon systems.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Given the specialized and high-value nature of Unmanned Combat Air Vehicle (UCAV) development and production, it is common for prime contracts to be awarded to large, established defense contractors. Subcontracting opportunities for small businesses may exist within the supply chain, but this contract's structure does not prioritize direct small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management structures, potentially involving the Defense Contract Management Agency (DCMA). Accountability measures would be tied to contract milestones, performance specifications, and delivery schedules. Transparency is often limited in sole-source defense contracts due to national security considerations and proprietary information, but contract awards and basic details are typically reported. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Unmanned Aerial Systems (UAS) Procurement
Advanced Weapons Systems Development
Defense Aerospace Manufacturing
Intelligence, Surveillance, and Reconnaissance (ISR) Platforms

Risk Flags

Sole-source award
Lack of competition
Potential for higher costs
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $315.7 million to GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC.. 16 GWOT UCA

Who is the contractor on this award?

The obligated recipient is GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $315.7 million.

What is the period of performance?

Start: 2008-11-26. End: 2012-04-02.

What is the specific type and capability of the Unmanned Combat Air Vehicle (UCAV) procured under this contract?

The data provided indicates the contract is for 'GWOT UCA', likely referring to Global War on Terrorism Unmanned Combat Air Vehicles. While specific model details are not present, General Atomics Aeronautical Systems, Inc. is well-known for developing the Predator and Reaper series of UAVs, which have been extensively used in combat operations for ISR and strike missions. These systems typically feature advanced sensors, precision-guided munitions capabilities, and long endurance, designed for persistent surveillance and engagement in contested environments.

How does the $315.7 million contract value compare to other UCAV procurements or similar defense contracts?

Direct comparison of the $315.7 million value is difficult without knowing the exact quantity and specific capabilities of the UCAVs procured. However, UCAV programs are inherently expensive due to advanced technology, research and development, and stringent performance requirements. For context, individual advanced UCAV platforms can cost tens of millions of dollars each, and multi-year procurement contracts for such systems often run into billions. This $315.7 million contract, awarded in 2008 over approximately 3.3 years, represents a significant investment for a specific phase or quantity of UCAV acquisition, likely for a critical operational need during the GWOT era.

What are the primary risks associated with awarding a sole-source contract for advanced defense systems like UCAVs?

The primary risks of a sole-source award for UCAVs include a lack of price competition, potentially leading to higher costs for the government and taxpayers. There's also a risk of reduced innovation, as the sole contractor faces less pressure to improve technology or efficiency. Furthermore, over-reliance on a single supplier can create supply chain vulnerabilities and strategic dependencies. Without competitive pressure, there's also a diminished incentive for the contractor to maintain rigorous quality control or cost management, necessitating robust government oversight.

What was the historical spending pattern for this specific UCAV program or similar systems prior to and following this contract?

Historical spending data for this specific UCAV program is not detailed in the provided information. However, General Atomics Aeronautical Systems, Inc. has been a consistent recipient of DoD funding for its unmanned systems programs, particularly since the early 2000s, coinciding with increased operational tempo during the Global War on Terrorism. Spending on UCAVs and related technologies has generally trended upwards over the past two decades as the military increasingly relies on these platforms for ISR and strike missions. This $315.7 million contract represents a significant single award within that broader trend.

What performance metrics or milestones were likely associated with this $315.7 million contract, and how were they measured?

Performance metrics for a contract of this nature would typically focus on technical specifications, delivery schedules, and operational readiness. For UCAVs, key metrics could include flight hours achieved, system reliability (Mean Time Between Failures), sensor performance (resolution, range), payload capacity, communication link stability, and successful mission completion rates. Milestones would likely involve design reviews, prototype testing, production lot acceptance, and final delivery. Measurement would involve rigorous government testing, acceptance trials, and ongoing operational feedback from end-users, all documented within contract deliverables and performance reports.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Atomics (UEI: 859181984)

Address: 16761 VIA DEL CAMPO CT, SAN DIEGO, CA, 92127

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $391,008,910

Exercised Options: $315,745,197

Current Obligation: $315,745,197

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862005G3028

IDV Type: IDC

Timeline